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    Question

    The 'K-shaped' recovery, discussed post-pandemic,

    indicates:
    A Uniform recovery across all sectors and income groups. Correct Answer Incorrect Answer
    B Recovery where some sectors/income groups improve while others deteriorate. Correct Answer Incorrect Answer
    C A slow but steady recovery for the entire economy. Correct Answer Incorrect Answer
    D Recovery led solely by the agricultural sector. Correct Answer Incorrect Answer
    E A V-shaped recovery followed by stagnation. Correct Answer Incorrect Answer

    Solution

    • A K-shaped recovery describes a situation where different parts of the economy recover from a recession at  different rates, times, or magnitudes . It depicts a  divergence .
      • The  upper arm of the 'K'  represents sectors, companies, or individuals (e.g., technology, pharmaceuticals, high-wage earners, asset owners) that recover quickly and see their fortunes improve.
      • The  lower arm of the 'K'  represents sectors and groups (e.g., hospitality, retail, low-wage service workers, small businesses) that continue to struggle or face decline.
        This pattern exacerbates pre-existing economic inequalities, which was a prominent feature of the global recovery from the COVID-19 pandemic.

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